Bunq online bank embarks on mortgage lending with € 100 million in initial loans
Bunq online bank entered the mortgage market after partnering with Venn Hypotheken, a subsidiary of insurance giant Nationale-Nederlanden.
Bunq is the first European “neobank” to develop in mortgage lending, having launched its activity with 100 million euros in real estate transactions selected by Venn.
Two-thirds of the loans are covered by the government’s NHG program, which guarantees the mortgage on properties worth up to € 310,000 against events such as death, divorce or unemployment. Home buyers can borrow a maximum of 80% of the value of the property.
Bank founder Ali Niknam said Bunq needed to diversify his portfolio of bonds, which currently represent 80% of his investments, but that he would continue with his cautious investment strategy.
“What our account holders sometimes conflict with what I want”, Niknam told Het Financieele Dagblad. “Traditional banks are inherently motivated to take big risks with other people’s money. I never wanted this.
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